Out of Province Executors (Ontario)
- Willskeeper
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Introduction
Choosing an executor is an important decision when creating a Will. An executor is responsible for carrying out the wishes outlined in your Will and ensuring that your estate is distributed according to your wishes. While it is recommended to choose an executor who lives in the same province as you, there are situations where you may have to choose an executor outside of Ontario. Here are some factors to consider when choosing an executor outside of Ontario:
Bond Requirements
Each province has its own rules regarding estate bonds. In Ontario, and as of the date of this article, out-of-province executors are required to post a security bond unless the net value of the estate does not exceed $200,000 or an affidavit stating that the deceased’s debts have been paid is included with the application for administration. However, other provinces may require out-of-province executors to post a bond regardless of the value of the estate. This bond can be expensive and inconvenient for your executor to deal with, so it's important to consider this factor when choosing an executor outside of Ontario.
Tax Implications
Choosing an executor outside of Ontario can also have tax implications. For example, an executor who is not a resident of Canada may be subject to Canadian taxes on any income earned from the estate. Additionally, there may be other tax implications specific to the province where the executor resides. It's important to consult a tax professional to understand the tax implications of choosing an executor outside of Ontario.
Convenience
Choosing an executor outside of Ontario may also be inconvenient for them to travel in order to settle your estate. This can be especially difficult if the executor lives in another country, as travel restrictions and visa requirements may apply. This can lead to delays in settling your estate and potentially additional expenses.
If you do decide to choose an executor outside of Ontario, it's important to choose someone you trust and who is willing to take on the responsibility. You should also consider appointing a co-executor who lives in Ontario to help with the administration of the estate.
Conclusion
In conclusion, while it is recommended to choose an executor who lives in the same province as you, there may be situations where you need to choose an executor outside of Ontario. When making this decision, it's important to consider factors such as bond requirements, tax implications, and convenience. With careful consideration and the help of WillsKeeper, you can choose an executor who will carry out your wishes and ensure that your estate is distributed according to your wishes.